February 6, 2017

Report #3Cobalt-Nickel-Copper in Newfoundland & Labradorand Québec, Canada

Advancing a cobalt-rich portfolio of discovery-ready exploration projects in CanadaThe new year started with a strong newsflow for King’s Bay and its market valuation has appreciated by about 125%, currently at $7 million CAD with 41 million shares issued last trading at $0.18 on the TSX.V.

After raising about a million dollars, the company officially closed the acquisition of the Lynx-Lake Property and increased its land package by a factor of 12 to a total of 240 km2 in order “to adequately cover the geological structures and geophysical signatures of interest” (i.e. King’s Bay sees extensive potential for multiple deposits in the area).

The permit for an airborne electro-magnetic study has been received recently. This important geophysics survey is expected to start once weather conditions permit, with the goal of identifying specific targets for a subsequent drill program to discover a potentially cobalt-rich deposit beneath shallow overburden. A VLF survey by previous owners has indicated strong conductors in the subsurface in several areas of the property.

Today, King`s Bay announced the 100% acquisition of 3 additional properties, this time in Québec, all of which provide excellent exploration potential for co-balt, nickel and copper to follow-up on promising historic results from surface sampling and regional geophysics.

The company is now planning exploration programs at these 3 newly added properties, consisting of grab and channel sampling, mapping and prospecting, to confirm historic results and potentially identify new targets.

Within a short time, King’s Bay’s management has executed on its ambitious plan of assembling a diverse portfolio of compelling exploration projects in safe jurisdictions focused on cobalt and high-tech metals, in order to find viable sources of supply for this emerging fast-growth sector which is still much dependent on foreign resources. King’s Bay will continue to seek out and evaluate properties showing prospect for development, and acquire accordingly for immediate exploration by King’s Bay and/or joint venture partners.

Company Details

King‘s Bay Gold Corp.Suite 1450 – 789 West Pender StreetVancouver, B.C. V6C 1H2 CanadaPhone: +1 604 681 1568 Email: brad@kingsbayres.comwww.kingsbayres.comShares Issued & Outstanding: 41,006,423

Canadian Symbol (TSX.V): KBGCurrent Price: $0.18 CAD (02/03/2017)Market Capitalization: $7 Million CAD

German Symbol / WKN: KGB1 / A2AN0E Current Price: €0.118 EUR (02/03/2017)Market Capitalization: €5 Million EUR

Chart Canada (TSX.V)

Chart Germany (Frankfurt)

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Past exploration on King’s Bay’s newly acquired properties in Québec yielded promising results never followed-up. Nowadays, cobalt grades of 0.5% are oftentimes praised world-class. King’s Bay plans to channel sample all properties this spring.

Ninuk Lake Project

Location: 175 km northeast of Umiujag in Québec,125 km from a deep-sea port

Size: 9 km2 (2,164 acres) in 19 claims

Past Exploration: In 2001, Falconbridge (now Xstrata) completed an exploration program consisting of surface sampling, mapping and electromagnetics. Surface sampling of massive sulphides in outcrop yielded anomalous values of up to 2.6% nickel, 1.8% copper and 0.27% cobalt.

Mapping of the area exposed several lenticular ultramafic bodies containing pods of massive sulphides. A small-scale electromagnetics program yielded several subsurface conductors in the area.

Due to several other discoveries that year, the exploration work by Falcon-bridge was not followed up. The compil-ation of these results encourages further work to be completed on the property.

Regional Geology: The area is Neoarchean in age and located within the superior province with ultramafic-felsic rocks including granodiorite, tonalite, paragneiss, amphibolite, peridotite, pyroxenite, and gabbronorite. Structurally the area of interest is bounded to the east and west by 2 regional fault systems.

Broadback River Project

Location: 24 km northwest of the “Nuinsco Discovery”, the Lac Rocher near-surface nickel sulphide deposit (measured & indicated: 800,000 t @ 1.12% nickel) from Victory Nickel Inc.

Size: 4 km2 (1,035 acres) in 9 claims

Access: Easily by James Bay Road north from Matagami and then by logging roads to the property 75 km inland.

Past Exploration: In 1985 a magnetic and electromagnetics survey was flown by the Quebec Ministry of Natural Resources that uncovered several large conductors. In 1999-2000 Falconbridge Ltd. took 152 samples and uncovered semi massive sulphide assaying 0.7% nickel, 0.3% copper and 0.09% cobalt, but only drill tested the northwestern portion of the property. All southeastern conductors remain untested.

Regional Geology: Archean in age and dominated by intrusive gabbro, which cuts felsic and mafic volcanics and iron formation of the Frotet-Evans Belt.

Roberge Project

Location: 2.1 km southeast of Chesterville in Québec

Size: 1.8 km2 (443 acres) in 3 claims

Access: Easily by paved road running through property

Past Exploration: A regional soil sampling program by the Québec Government revealed several anomalous sediment samples on the Roberge Property, assaying up to 1.06% cobalt. Follow-up work by King’s Bay expected this spring.

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“The price for cobalt continues to rise and thus we feel having a greater portfolio of cobalt bearing projects provides the best value for our shareholders. Quebec has a strong history of successful mining ventures and King’s Bay is pleased to build on the exploration work that was done by Falconbridge Ltd. in early 2000.” (Kevin Bottomley, President & CEO of King‘s Bay on February 6, 2017)

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Lynx Lake Project

Location: 80 km southeast of Happy Valley-Goose Bay in Québec

Size: 240 km2 (59,305 acres)

Access: Easily by the Trans-Labrador Highway running through the property

Past Exploration: Prior to 2008, the property was deemed too remote and as such remained virtually unexplored.

In 2008, the Department of Transporta-tion constructed the new Trans-Labra-dor Highway, which now runs through the property. During blasting (for road aggregate) on the property in the same year, disseminated and massive sulphide mineralization was discovered.

In 2009, local prospectors sampled and assayed this aggregate quarry on the eastern portion of the property and assayed up to 0.94% cobalt, 1.39% copper, 0.21% nickel and 6.5 g/t silver.

In 2014, regional low resolution magnetic surveys by the government and hand-held electromagnetic surveys by local prospectors revealed strong conductors beneath the overburden.

In 2015, the western portion of the property was grab sampled, yielding up to 0.57% cobalt, 1.03% copper, 0.1% nickel, 0.36% chromium, 0.39% molybdenum, 0.23% vanadium and 5 g/t silver.

On January 3, King’s Bay closed a financing with total proceeds of $938,753 CAD.

On January 11, the permit for an airborne electromagnetic (“EM”) geophysics survey was received.

On January 17, the company increased the Lynx Lake Copper-Cobalt Property land package from 20 to 240 km2 in order to adequately cover the geological structures and geophysical signatures of interest.

On January 19, the closing of the Lynx Lake Property acquisition was announced.

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The Lynx Lake Project (above map shows property before it was expanded 12-fold) in Newfoundland & Labrador benefits from proximity to the Trans-Labrador Highway and a 3-phase power line running across the property.

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The next steps for King’s Bay will be the completion the airborne EM survey and evaluation of the data for high priority drilling targets in the spring.

This geophysics survey will be strategically placed within the newly expanded land area in order to explain some of the EM anomalies that have been discovered during surficial reconnaissance.

Government regional low resolution residual magnetic surveys, and preliminary handheld electromagnetic surveys done by local prospectors, have shown strong conductors beneath the overburden, and provide incentive to explore the area further for additional subsurface mineralization.

Although the property has never been drilled before, the sampling assays in both the eastern and western part of the property (before it was expanded from 20 to 240 km2) indicate possibility for a large body of mineralization at shallow depths.

Thanks to excellent road accessibility to deep sea water ports, a power line that runs directly adjacent to the property and the proximity to the town of Happy Valley-Goose Bay, it appears to be a perfect time now to explore this highly prospective property amid rising energy metal prices, first and foremost the battery-critical element cobalt.

Previous Coverage

Report #2: “Cobalt Crunch Time” (January 20, 2017)

Report #1: “Potential for a Massive Discovery of Cobalt, Copper and High-Tech Metals” (October 27, 2016)

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Pictures showing the Lynx Lake Property in Newfoundland & Labrador; courtesy of King’s Bay.

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Initially, there was little to no exposure on the Lynx Lake Property (Newfound-land & Labrador) until the construction of the Trans-Labrador Highway com-menced. Now, due to excellent access-ibility and new discoveries of mineraliz-ation in bedrock, the property has great potential as an exploration target for an economic copper-cobalt-nickel magma-tic or IOCG type deposit.

Grab samples from gossanous areas of the rock pits have yielded assays with up to 1.39% copper, 0.94% cobalt, 6.5g/t silver, 0.21% nickel and 0.23% van-adium. Veins of massive sulphides can be seen throughout these areas. Molyb-denite has also been identified in the

western area of mineralization yielding 0.392% molybdenum and 112 ppm bismuth. A previous VLF survey, carried out by previous owners, has indicated good conductors present in the sub-surface in several areas of the mapped granite.

The Lynx-Lake Property is situated in the Grenville Province and is Proterozoic in age. It is separated by a north easterly trending fault. The western portion of the property is underlain by granite, granodio-rite and gneiss that varies texturally from weakly foliated to well banded. The eastern portion of the property is underlain by granite, amphibolite with massive gabbro, norite and troctolite units.

Cobalt is also mined from nickel-cobalt laterite deposits, which have higher CAPEX and OPEX relative to sulphide deposits. The price of cobalt is rising due to a combination of factors, some of which are related to unsettled conditions in areas such as the DR Congo, where the majority (up to 65%) of the world’s cobalt is mined. Other factors include an increased demand for batteries. A single rechargeable car battery contains some 23 kg of cobalt. By 2020, cobalt use in batteries alone could be greater than the entire world market for refined cobalt in 2015. China refines 52% of the world‘s cobalt. The silver-gray metal is also used in alloys for aircraft engine parts and for alloys with corrosion/wear resistant uses.

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Disclaimer and Information on Forward Looking Statements:All statements in this report, other than statements of historical fact should be con-sidered forward-looking statements. Much of this report is comprised of statements of projection. Statements in this report that are forward looking include that King’s Bay Gold Corp. or any other company or market will perform as expected; that King’s Bay Gold Corp. will complete the recently announced transaction(s); that the company will acquire more projects; that King’s Bay Gold Corp. will form joint ventures; that exploration and drilling will start soon; that extensive potential for multiple deposits is seen by King’s Bay; that exploration will start once weather conditions permit; that exploration has been or will be successful; that the company can raise suffi-cient funds for a transaction, exploration and corporate matters; that any of the mentioned plans, comparisons with other companies, regions or numbers are valid or economic. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in these for-ward-looking statements. Risks and uncertain-ties respecting gold and resource companies are generally disclosed in the annual financial or other filing documents of King’s Bay Gold Corp. and similar companies as filed with the relevant securities commissions, and should be reviewed by any reader of this report. In addition, with respect to King’s Bay Gold Corp., a number of risks relate to any statement of projection or forward statements, including among other risks: the receipt of all necessary approvals and permits; the ability to conclude a transaction to start or continue exploration; uncertainty of future market regulations, capital expenditures and other costs; finan-cings and additional capital requirements for exploration, development, construction, and operating of a project; the receipt in a timely fashion of further permitting for its legislative, political, social or economic developments in the jurisdictions in which King’s Bay Gold Corp. carries on business; operating or technical difficulties in connection with production or development activities; the ability to keep key employees, joint-venture partner(s), and oper-ations financed. There can be no assurance that such statements will prove to be accur-ate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking

information. Rockstone and the author of this report do not undertake any obligation to update any statements made in this report.Disclosure of Interest and Advisory Cautions: Nothing in this report should be construed as a solicitation to buy or sell any securities men-tioned. Rockstone, its owners and the author of this report are not registered broker-deal-ers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-deal-er. Never make an investment based solely on what you read in an online or printed report, including Rockstone’s report, especially if the investment involves a small, thinly-traded company that isn’t well known. The author of this report is paid by Zimtu Capital Corp., a TSX Venture Exchange listed investment company. Part of the author’s responsibilities at Zimtu Capital Corp. is to research and report on companies in which Zimtu Capital Corp. has an investment. So while the author of this report is not paid directly by King’s Bay Gold Corp., the author’s employer Zimtu Capital Corp. will benefit from appreciation of King’s Bay Gold Corp.’s stock price. The author also own shares of King’s Bay Gold Corp.., as well as shares of Zimtu Capital Corp., and thus would also benefit from volume and price appreci-ation of its stocks. Hence, multiple conflicts of interests exist. Therefore, the information provided herewithin should not be construed as a financial analysis or recommendation but as advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independ-ently and has received, which the author assumes to be reliable. Rockstone and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. King’s Bay Gold Corp. has not reviewed all of the content of this report prior to publication. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into ef-fect. Please read the entire Disclaimer careful-ly. If you do not agree to all of the Disclaimer, do not access this website or any of its pages including this report in form of a PDF. By using this website and/or report, and whether or not you actually read the Disclaimer, you are deemed to have accepted it. Information pro-vided is educational and general in nature.

Author Profile & Contact

Stephan Bogner (Dipl. Kfm. FH)Rockstone Research 8050 Zurich, Switzerland+41-44-5862323sb@rockstone-research.com

Stephan Bogner studied at the International School of Management (Dortmund, Germany), the European Business School (London) and the University of Queensland

(Brisbane, Australia). Under supervision of Prof. Dr. Hans J. Bocker, Stephan completed his diploma thesis (“Gold In A Macroeconomic Context With Special Consideration Of The Price Formation Process”) in 2002. A year later, he marketed and translated into German Ferdinand Lips‘ bestseller (“Gold Wars“). After working in Dubai for 5 years, he now lives in Switzerland and is the CEO of Elementum International AG specialized in duty-free storage of gold and silver bullion in a high-security vaulting facility within the St. Gotthard Mountain Massif in central Switzerland.

Rockstone is specialized in capital markets and publicly listed companies. The focus is set on exploration, development and production of resource deposits. Through the publication of general geological basic knowledge, the individual reports receive a background in order for the reader to be inspired to conduct further due diligence and his own research.

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Report #3 | King‘s Bay Gold Corp.